Madagascar Aromatic and Medicinal Plants Value - Microlinks

pharmaceutical companies. In recent decades, the rising cost of Western medicine and a growing recognition of
traditional medicine have revived use of plant-based, locally-produced medicinal products. Research institutions have
helped validate the active medicinal properties of traditional plants. During the same period, through self-directed
exchange forums, events and campaigns, there has been a perceptible coming together of traditional healers, medical
doctors and public authorities. This has been propelled by the World Health Organization’s (WHO) recent mandate
that African countries must increase traditional health practices to serve up to 30 percent of the health delivery
services. All of these factors have increased the respectability and use of plant-based traditional medicine and
practices.
International AMP markets are expanding at a rate of 10 to 15 percent annually and there is a call for increasingly
diversified products— particularly those that are new and exotic—as consumers become increasingly interested in
alternative and natural medicine.
Madagascar’s ability to respond to the trends of these two end markets is founded on:
• its unique and varied plant base, 80 percent of which is endemic
• an experienced AMP processing sector, which realizes its need to upgrade
• an emerging awareness among actors of the inefficiency of the present organization of the AMP value chain
• increased awareness among actors in the value chain, the Malagasy government, certain importers, NGOs and
development projects of the need to tie environmental sustainability to market demands, not only to expand the
income generating base, but also to reduce tavy cultivation practices
These factors also favor the AMP sector as an opportunity for addressing interlinked development and conservation
challenges. As the present study reveals, however, development of the export-oriented AMP industry also presents the
danger of negative environmental impacts, particularly through the over-exploitation of high-demand plants.
Experience with AMP has shown that economic value does not automatically create incentives for sustainable
management of the resource base. Linking AMP value chain development to biodiversity conservation, sustainable
NRM and rural poverty reduction requires deliberate action. The export sector has applied pressure through importer
requirements for environmental considerations in the harvesting and production of aromatic and medicinal products.
Malagasy-led programs, institutions and interest groups are putting additional pressure to apply stricter regulations to
safeguard the plant production base and promote sustainability at the processing level.
B. STUDY OBJECTIVES
The goal of this analysis is to provide a diverse group of stakeholders with the information needed to make sound
decisions and plan interventions focused on developing productive and globally competitive industries dependent
upon the sustainable management of scarce natural resources that will benefit local people. A growing body of
research has highlighted the interdependent and interlocking challenges of promoting sustainable management of
scarce environmental resources, developing competitive industries, reducing poverty through integration of micro-
and small enterprises (MSEs) into competitive industries, improving heath and nutrition standards, and fostering the
emergence of democratic governance.
The objective of this analysis is to provide a road map for businesses and facilitating NGOs from which stakeholders
in the AMP value chain can develop an industry competitiveness strategy and a stakeholder-driven action plan
to:
• increase the competitiveness and productivity of the natural resource-dependent industry
• ensure the sustainability of the AMP natural resource base in question
MADAGASCAR AROMATIC AND MEDICINAL PLANT VALUE CHAIN ANALYSIS 10